Human Resource Human Resource ManagementManagement

Theories,Techniques and Theories,Techniques and ApplicationsApplications

By WilliamqBy Williamq

Chapter 1Chapter 1 The Strategic Role of The Strategic Role of Human Resource ManagementHuman Resource Management

Behavioral ObjectivesBehavioral ObjectivesWhen you finish studying this chapter, you should When you finish studying this chapter, you should be able to:be able to:AnswerAnswer the question, “What is Human Resource the question, “What is Human Resource Management?”Management?”DiscussDiscuss the components of the changing the components of the changing environment of Human Resource Management.environment of Human Resource Management.PresentPresent examples of the new management examples of the new management practices that are changing Human Resource practices that are changing Human Resource management.management.GiveGive examples of human Resource examples of human Resource management’s role as a strategic business management’s role as a strategic business partner.partner.

Chapter OutlineChapter Outline

Human Resource Management at WorkHuman Resource Management at Work

The Changing Environment of Human The Changing Environment of Human

Resource Management Resource Management

Tomorrow’s HR TodayTomorrow’s HR Today

Strategic Planning and HR Strategic Planning and HR

ManagementManagement

The Plan of This BookThe Plan of This Book

Key Words : Key Words :

management processmanagement processThe five basic functions of planning, The five basic functions of planning, organizing, staffing, leading, and controlling.organizing, staffing, leading, and controlling.

human resource managementhuman resource managementThe policies and practices one needs to The policies and practices one needs to carry out the “people” or human resource carry out the “people” or human resource aspects of a management position, including aspects of a management position, including recruiting, screening, training, rewarding, recruiting, screening, training, rewarding, and appraising.and appraising.

Key Words :Key Words :

authorityauthorityThe right to make decisions, direct others’ work, The right to make decisions, direct others’ work, and give orders. and give orders.

ling managerling managerA manager who is authorized to direct the work of A manager who is authorized to direct the work of subordinates and responsible for accomplishing the subordinates and responsible for accomplishing the organization’s goals.organization’s goals.

staff managerstaff managerA manager who assists and advises line managers.A manager who assists and advises line managers.

Key Words :Key Words :

line authorityline authorityThe authority exerted by a personnel manager The authority exerted by a personnel manager by directing the activities of the people in his or by directing the activities of the people in his or her own department and in service areas (like her own department and in service areas (like the plant cafeteria).the plant cafeteria).

implied authorityimplied authorityThe authority exerted by a personnel manager The authority exerted by a personnel manager by virtue of others’ knowledge that he or she by virtue of others’ knowledge that he or she has access to top management (in areas like has access to top management (in areas like testing and affirmative action).testing and affirmative action).

Key Words :Key Words :

functional controlfunctional controlThe authority exerted by an HR manager as The authority exerted by an HR manager as coordinator of personnel activities.coordinator of personnel activities.

employee advocacyemployee advocacyHR must take responsibility for clearly defining HR must take responsibility for clearly defining how management should be treating how management should be treating employees, make sure employees have the employees, make sure employees have the mechanisms required to contest unfair mechanisms required to contest unfair practices, and represent the interests of practices, and represent the interests of employees within the framework of its primary employees within the framework of its primary obligation to senior management.obligation to senior management.

Key Words :Key Words :

globalizationglobalizationThe tendency of firms to extend their sales The tendency of firms to extend their sales or manufacturing to new markets abroad.or manufacturing to new markets abroad.

competitive advantagecompetitive advantageAny factors that allow an organization to Any factors that allow an organization to differentiate its product or service from differentiate its product or service from those of its competitors to increase market those of its competitors to increase market share.share.

Key Words :Key Words :

cost leadershipcost leadership

The enterprise aims to become the low-The enterprise aims to become the low-

cost leader in an industry.cost leader in an industry.

differentiationdifferentiation

A firm seeks to be unique in its industry A firm seeks to be unique in its industry

along dimensions that are widely valued along dimensions that are widely valued

by buyers.by buyers.

The Strategic Roles of HRMThe Strategic Roles of HRM

1.1. What is human resource management?What is human resource management?

2.2. Functions and divisions of human resource Functions and divisions of human resource

management.management.

3.3. Evolution of human resource management Evolution of human resource management

in the west.in the west.

4.4. Human resource management in China.Human resource management in China.

1. What is human resource management?1. What is human resource management?

Definition of HRMDefinition of HRM: :

Human resource management is to make Human resource management is to make the most productive use of human resource the most productive use of human resource to the greatest benefits of the organization to the greatest benefits of the organization and individuals.and individuals.

Organization: profits and social Organization: profits and social commitments.commitments.

Individuals: development and achievement.Individuals: development and achievement.

The importance of HRMThe importance of HRM

(1)(1) People is the key factor of production.People is the key factor of production.

(2)(2) Productivity is the key to measure a nation’s Productivity is the key to measure a nation’s economic growth potential, and labor quality is economic growth potential, and labor quality is the key to improving productivity.the key to improving productivity.

(3)(3) Competition today is the competition for talents.Competition today is the competition for talents.

(4)(4) Since man is the most uncontrollable and Since man is the most uncontrollable and unpredictable variable of all production variables, unpredictable variable of all production variables, organizational success depends on the organizational success depends on the management of people.management of people.

Organization and individualOrganization and individual

(1)(1) Organization needs: Profits, productivity and Organization needs: Profits, productivity and

markets.markets.

(2)(2) Individual needs: Maslows Need HierarchyIndividual needs: Maslows Need Hierarchy

Physiological needs, security, belonging, self-Physiological needs, security, belonging, self-

respect and self-actualization.respect and self-actualization.

(3) Coordinating organization and individual needs: (3) Coordinating organization and individual needs:

goal of HRM.goal of HRM.

People and productivityPeople and productivity

(1)(1) Productivity: the measurement of economic Productivity: the measurement of economic growth potential.growth potential.

(2)(2) Productivity formula: input : outputProductivity formula: input : output

(3)(3) Measurement of productivity:Measurement of productivity:

a.a. Productivity of worker is the output per hour.Productivity of worker is the output per hour.

b.b. Productivity of equipment is the output per every Productivity of equipment is the output per every dollar invested.dollar invested.

c.c. Productivity of energy is the output per every unit Productivity of energy is the output per every unit of energy consumed.of energy consumed.

Employee quality and productivityEmployee quality and productivity

(1)(1) Employee skill determines productivity.Employee skill determines productivity.

Man and tools.Man and tools.

(1)(1) Employee motivation affects productivity.Employee motivation affects productivity.

Willingness to perform.Willingness to perform.

(1)(1) Employee creativity and initiatives improve Employee creativity and initiatives improve

productivity.productivity.

innovation is the key to improvement.innovation is the key to improvement.

6. Functions and divisions of HRM6. Functions and divisions of HRM

(1)(1) Management processManagement process

a.a. Planning.Planning.

b.b. Organizing.Organizing.

c.c. Staffing.Staffing.

d.d. Leading.Leading.

e.e. Controlling.Controlling.

(2) Functions of HRM(2) Functions of HRMa.a. Conducting job analysis.Conducting job analysis.

b.b. Planning future needs and supplies.Planning future needs and supplies.

c.c. Recruiting and selecting employees.Recruiting and selecting employees.

d.d. Orienting and training employees.Orienting and training employees.

e.e. Managing wages and benefits.Managing wages and benefits.

f.f. Performance appraisal.Performance appraisal.

g.g. Communicating (discipline and services).Communicating (discipline and services).

h.h. Building employee commitment Building employee commitment (incentives).(incentives).

(3) Line managers’ HRM responsibilities(3) Line managers’ HRM responsibilities

a.a. Job placing.Job placing.

b.b. Orienting new employees.Orienting new employees.

c.c. On-job training of employees.On-job training of employees.

d.d. Interpreting company policies and procedures.Interpreting company policies and procedures.

e.e. Conducting job appraisals.Conducting job appraisals.

f.f. Controlling labor costs.Controlling labor costs.

g.g. Labor protection and disciplines.Labor protection and disciplines.

(4) Staff managers’ HRM responsibilities(4) Staff managers’ HRM responsibilities

a.a. A line function: directing and managing people in A line function: directing and managing people in the HRM department.the HRM department.

b.b. A coordinating function: coordinating HRM A coordinating function: coordinating HRM activities across the organization.activities across the organization.

c.c. Staff functions:Staff functions:

Same as the HRM functions plus labor relations Same as the HRM functions plus labor relations and collective bargaining with the trade unions.and collective bargaining with the trade unions.

3. Evolution of HRM in the west3. Evolution of HRM in the west

(1)(1) Industrial Revolution: Industrial Revolution:

a.a. Adam Smith: specialization and division of labor.Adam Smith: specialization and division of labor.

b.b. Robert Owens: Pioneer of HRM, performance Robert Owens: Pioneer of HRM, performance appraisal and pay for performance (fair treatment appraisal and pay for performance (fair treatment of employees)of employees)

(2) Scientific management(2) Scientific management

Frederic Taylor: Father of scientific managementFrederic Taylor: Father of scientific managementa. Definition: a. Definition: Systematic analysis and breakdown of work Systematic analysis and breakdown of work

into the smallest mechanical components into the smallest mechanical components and rearranging them into the most efficient and rearranging them into the most efficient combination.combination.

b. Steps: b. Steps: Job analysis—selection—training—rewards.Job analysis—selection—training—rewards.

(3) Industrial psychology(3) Industrial psychology

a.a. Hneri Fayol’s management functions:Hneri Fayol’s management functions:

Planning, organizing, communicating, coordina- Planning, organizing, communicating, coordina- ting and controlling.ting and controlling.

b.b. F. & L. Gilbreth’s principles of work simplification F. & L. Gilbreth’s principles of work simplification (time and motion studies).(time and motion studies).

c.c. Henry Gantt’s principles of work scheduling.Henry Gantt’s principles of work scheduling.

d. Continuation of scientific management.d. Continuation of scientific management.

(4) Human behavior and relations(4) Human behavior and relations

a.a. The Hawthorne Studies by Westing HouseThe Hawthorne Studies by Westing House

The happy workers are the most productive The happy workers are the most productive workers. (The Pet Milk theory)workers. (The Pet Milk theory)

b.b. Max Weber: the Ideal Bureaucracy.Max Weber: the Ideal Bureaucracy.

c.c. Chris Argyris: Individual and organization—Chris Argyris: Individual and organization—mutual adjustment.mutual adjustment.

d.d. Affected by the theories of behavioral science Affected by the theories of behavioral science and system theory.and system theory.

(5) Three stages of growth of HRM(5) Three stages of growth of HRM

a.a. File Management (1900-1964):collecting and File Management (1900-1964):collecting and storing data of each employee.storing data of each employee.

b.b. Government Accountability (1964-1980): Government Accountability (1964-1980): Compliance to government regulations.Compliance to government regulations.

c.c. Human Resource Management: Human Resource Management: Treating human resource as an asset.Treating human resource as an asset. Emphasizing joint responsibilities of line Emphasizing joint responsibilities of line

managers and staff managers.managers and staff managers.

5. HRM in China5. HRM in China

(1)(1) Administration:Administration:a.a. Ministry of LaborMinistry of Laborb.b. Ministry of Organization of the Central Ministry of Organization of the Central

Committee.Committee.(2) Worker participation in China:(2) Worker participation in China:a.a. Worker Innovation and Workers’ Congress.Worker Innovation and Workers’ Congress.b.b. Stock sharing and voluntary grouping.Stock sharing and voluntary grouping.(3) Trade Union and its functions.(3) Trade Union and its functions.(4) Types of organizations and their HRM activities(4) Types of organizations and their HRM activities